The local stock market finally took a breather as investors pocketed gains from a 7-day rally.
The main index dropped 31.65 points or 0.46 percent to close at 6,818.99 as the Industrial sector led the retreat while Conglomerates and Mining firms continued to advance. Volume was still hefty at 1.17 billion shares worth P8.04 billion as gainers beat losers 117 to 94 with 34 unchanged.
“Philippine shares finally succumbed to profit taking, after successive sessions of bargain hunting, and ahead of the release of (US) July retail sales data,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He explained that, “The latter is being used by investors to gauge how consumers are managing the impact of rising inflation and oil prices.“
“Additionally, the regional market moves were also influenced by the strong quarterly results from both Walmart and Home Depot,” Limlingan noted.
Philstocks Financial Research and Engagement Officer Claire Alviar said that, “After seven consecutive days of gains, investors took some profits ahead of the interest rate decision of the Bangko Sentral ng Pilipinas (BSP).”
She added that, “Despite today’s decline, the market still holds ground above the 6,800 immediate support level. We are seeing the strong one at 6,600 while the resistance would be at 7,000-7,100.”